New Delhi: The first defence park in the nation, which would make components required for defence establishments, is to come up at Ottapalam after the central government gave its ‘in-principle’ approval for the same. The project report for the same was submitted by KINFRA, which was approved by DIPP, a department under the commerce ministry. The park is to come up in 60 acres at Ottapalam.

The cost of the project, including cost of the land is about Rs 231 crore. Out of this, Rs 50 crore is to be offered by the central government, while the remaining Rs 181 crore is to be spent by KINFRA. The project would move ahead after a project management consultant is named.

According to KINFRA MD, Dr. G.C. Gopala Pillai, the park could start ventures in one year and reach maximum production in two years. The defence park would manufacture night vision equipment, parachutes, flying suits, diving suits and so on. The products manufactured here can be exported through the Nedumbassery, Coimbatore and Karippur airports and also through the Vallarpadom container terminal.

As of now, 6000 units manufacture goods for the defence services in India. However, they meet only 25 per cent of requirements. Since the defence depends on imports, it is taking up a large chunk of foreign reserves of the nation. If imports can be reduced by at 25 per cent, about 8 per cent growth can be achieved. This could also create about 1.2 lakh jobs.